Woge Optoelectronics: Construction and production status of new glass-based MLED projects

On December 19, 2022, Woge Optoelectronics (603773.SH) released a record of investor relations activities (from November 29, 2022 to December 16, 2022). Participating institutions include Changjiang Securities, ABC-CA Fund, Haitong Securities Chemicals, CITIC Securities, Huaan Fund, Great Wall Securities, CCB Fund, etc.

In view of the problems such as revenue growth in the third quarter but losses in profits, Vogel Optoelectronics conducted a one-by-one analysis. The company stated that the reason for the increase in the company's revenue in the first three quarters of 2022 compared with previous periods was mainly due to the increase in the number of periods in which new holding subsidiaries were included in the scope of consolidation during the reporting period. The losses during the reporting period were mainly due to the fact that the company's traditional finishing business still accounts for a large proportion of the company's revenue so far. The revenue and profit of this business segment have declined to a certain extent compared with the previous year. This was mainly due to the intensified competition in the LCD panel industry and the decline in display panel terminal demand during the reporting period. The product sales price of the traditional glass finishing business dropped, and the gross profit decreased. In addition, the company's initial investment in new glass-based MLED backlight products was relatively large, including investment in equipment, personnel, R&D and other expenses, and the new products have not yet produced economies of scale.

In response to the construction and production of the company's new glass-based MLED project, Vogel Optoelectronics said that as of now, the total production capacity of the Jiangxi Dehong Display Company invested and established by the company in the early stage is planned to be an annual output of 5 million square meters of Mini/Micro glass-based circuit substrates. It is currently under construction and is expected to have a first-phase production capacity of 1 million square meters in the second half of next year and achieve mass production. The specific scale of production is affected by customer and consumer terminal demand.